Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
80
KA P LA N P UBL I SH IN G 
Required:
Classify the following issues as relating to either A (delayering), B (downsizing) or C 
(outsourcing): 
(i) Could allow third party organisations access to Y’s information and 
processes, leading to loss of competitive advantage. 
(ii) 
Keeping the current management structure, but reducing the number of staff 
could lead to demotivation among the remaining workers. 
(iii) Eliminating several levels of unnecessary management to reduce Y’s costs, 
leading to lower prices for customers. 
(iv) This is likely to lead to a more ‘team-working’ approach, where employees 
take on different roles in different teams, as necessary. 
 
 
(0.5 marks each = 2 marks total) 
(b) 
Y has decided to examine the idea of outsourcing its functions in more detail. Y’s 
management team have been told that there are four distinct types of outsourcing: 
A Total 
B Project 
management 
C Ad 
hoc 
D Partial 
The following sentences contain gaps which specify a particular type of outsourcing. 
Y is considering outsourcing some of its call centre activities to GH Co. GH will 
provide _1_ outsourcing, with GH operators taking calls from new customers looking 
to purchase a policy. Y’s existing staff will deal with existing customer renewals, 
queries and complaints. 
Required:
(i) 
Select the type of outsourcing that appropriately fills gap 1 above; i.e. select 
A, B, C or D. 
Y has been approached by another company, HG Co, which has offered to provide 
extra call centre staff in the month of January – which is the busiest time of year for 
Y. This _2_ outsourcing would help Y to avoid losing customers due to the long delays 
customers can face on the phone during this month.